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I thought the main concern with the block size was not typical western connections (where as you say 10 Gbps is no problem) but the limited performance of data crossing the Great Firewall of China?

That's complete FUD on several levels. On a most general level, mining itself only needs the header. Chinese miners can verify blocks and transactions elsewhere and only send headers to the actual mining sites. A dial-up should be enough.

Regardless, from what I heard it's not a problem anymore. Even if it was, allowing 'fast passage' for bitcoin blocks seems like a obvious course of action for the Chinese government, it's just another export industry at this point.

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